2023 Volume 31 Issue 1 Pages 55-70
The purpose of this study is to investigate the effect of the change from the additive to the deductive method on commitment to target cost. This study conducted web-based surveys of engineers involved in target costing. The change from the additive to the deductive method was confirmed by measuring the target costing methods on the engineer’s previous and current projects. This study finds that the change from the additive to the deductive method is associated with a decrease in commitment. This study is one of the few empirical studies that focus on the effect of the change in the target cost setting methods and contributes to target costing research.
